HomeMy WebLinkAbout04/01/09_PFA_AGENDA_PACKET'~ ' ' BAKERSFIELD PUBLIC FINANCING AUTHORITY
~~ ~ BOARD OF DIRECTORS
''qt AGENDA
SPECIAL MEETING OF APRIL 1, 2009
Council Chambers, City Hall, 1501 Truxtun Avenue
Special Meeting - 5:15 p.m.
SPECIAL MEETING - 5:15 p.m.
ROLL CALL
2. PUBLIC STATEMENTS
3. MINUTES
a. Approval of minutes of the February 23, 1994 Special Meeting of the Bakersfield Public
Financing Authority Board of Directors.
4. NEW BUSINESS
a. Resolution authorizing the execution and delivery of a Bond Purchase Agreement with the
Bakersfield Redevelopment Agency and George K. Baum & Company and authorizing and
directing actions related thereto.
Staff recommends adoption of resolution.
b. Authorize transfer of residual fund balance of $229,154.31 from the Bakersfield Public
Financing Authority to the City of Bakersfield.
Staff recommends approval of transfer.
c. Setting next Public Financing Authority meeting to be held in conjunction with a City
Council Meeting in the first quarter of 2010.
Staff recommends approval.
5. ADJOURNMENT
Respectfully submitted,
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Alan Tandy
City Manager
03/25/09 10:40am
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° ADMINISTRATIVE REPORT
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10
MEETING DATE: April 1, 2009 AGENDA SECTION: Consent Calendar
ITEM: 3 , Q„
TO: Honorable Mayor and City Council
FROM: Pamela McCarthy, City Cler c~w/
DATE: March 20, 2009
APPROVED
DEPARTMENT HEA ~ ~~
CITY ATTORNEY
CITY MANAGER
SUBJECT: Approval of minutes of the February 23, 1994 Special Meeting of the Bakersfield Public
Financing Authority Board of Directors.
RECOMMENDATION:
Staff recommends approval.
BACKGROUND:
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MEETING DATE: April 1, 2009 AGENDA SECTION: New Business
ITEM: 1-{ , a .
TO: Chairman and Board of Directors of the
Bakersfield Public Financing Authority APPROVED
FROM: Nelson K. Smith, Treasurer of the Authority TREASURER ~
DATE: March 19, 2009
GENERAL COUNSEL /(~'
EXECUTIVE MANAGER
SUBJECT: Redevelopment Agency Tax Allocation Bonds 2009 Series A, B, C & D
1. Resolution of the Governing Board of the Bakersfield Public Financing Authority
authorizing the execution and delivery of a Bond Purchase Agreement by and among
the Authority, the Bakersfield Redevelopment Agency and George K. Baum &
Company and authorizing and directing actions related thereto.
RECOMMENDATION: Staff recommends adoption of the resolution.
BACKGROUND:
The Bakersfield Redevelopment Agency took several actions at their March 31, 2009 meeting to
move forward with and RDA bond issue to fund a variety of redevelopment projects.
The City Council will be asked later this evening to adopt a resolution approving the issuance of the
bonds and related actions. The debt to be incurred will be debt of the Redevelopment Agency and
will be repaid with a combination of RDA Tax Increment revenues and RDA Housing set-aside funds.
The Bakersfield Public Financing Authority (the Authority) was originally created in 1993 to facilitate
the issuance of several bond transactions (in 1994) including debt related to the Convention Center
Ballrooms and Meeting Rooms, bridge projects, sewer projects, and the refinancing of some
Assessment District debt.
The Authority is being asked this evening to facilitate the negotiated sale of the Redevelopment
Agency Tax Allocation Bonds 2009 Series A, B, C 8~ D by authorizing and being a party to the Bond
Purchase Agreement with the Bakersfield Redevelopment Agency and the bond underwriter, George
K. Baum and Company. The Authority is acting as a "pass through" agent to facilitate the negotiated
sale transaction. Neither the Authority nor the City will have any obligation regarding the repayment
of the bonded debt to be incurred by the Redevelopment Agency.
The remainder of information being provided below is a copy of the information provided to the
Redevelopment Agency at their meeting yesterday regarding the pending bond transaction.
nks
P:~BondDocsWdmin -RDA TABS series ABCD to PFA board April 1, 2009.doc
March 19, 2009
4826-0198-1440.2
ADMINISTRATIVE REPORT
RDA REPORT INFORMATION
City/Agency staff have been planning and anticipating several redevelopment projects for several
months. An overview of these potential bond funded projects was provided to the Agency members
at their October 13, 2008 meeting. The proposed projects include the following:
• Property Acquisition adjacent to Mill Creek at 60017th Street
• Construction of Sewer Lift Station, Wet & Dry Utilities on 18th and 19th Street
• Property Acquisition adjacent to Mill Creek at 600 &602 18th Street
• Infrastructure Improvements for Milt Creek Linear Park Canal at South Mill Creek
• Property Acquisition on California Avenue in the Mill Creek vicinity
• Multi-family urban housing project (the Courtyard - 57 units) in the vicinity of South Mill Creek
• Multi-family for sale town-homes (Creekview - 36 units) between R, S, 14th, 8~ Calif. Ave
• Mixed use project involving reuse of a property at 1612 19th Street (City Lofts)
• Affordable senior housing rental project (19th Street PIa2a) on Mill Creek at 18th 8~ 19th Streets
The estimated cost of completing these projects is approximately $13,625,000. However, the exact
amount of funds necessary to complete each of the individual projects is not known at this time and
several of the projects are subject to negotiations and / or formal bidding processes that are in
various stages of completeness. In addition to the estimated construction proceeds, we need to
include funding for required debt service reserve funds, legal fees, and other costs associated with
the issuance of the bonds. The total par amount of the bonds sold will not exceed $16.5 million.
We are requesting to move forward with this bond sale at this time so we can provide some
assurance to the other parties involved (property owners and/or contractors) that funds are actually
available to enter into binding contracts. Both the City and the Agency have a long history of not
entering into agreements until funding is in place.
THE BOND STRUCTURE:
The bond sale is being structured in four (4) separate series of bonds. The four series are separated
by project type and/or by project area. The Series A bonds will fund those projects that qualify for tax
exempt funding and are located in the Old Town Kern project area. The Series B bonds will fund
those projects that qualify for tax exempt funding and are located in the Southeast project area. The
Series C bonds will fund projects in the Southeast project area that do not qualify for tax exempt
financing. Finally, the Series D bonds will fund Low and Moderate Housing related projects that can
be repaid with housing set-aside funds. Housing projects from all three project areas will be
combined in the Series D bonds for marketing purposes, but it is the intent of staff to repay the debt
on a proportionate basis; matching the individual projects with the project area housing funds.
FINANCING DOCUMENTS:
The various documents we are asking the Agency to approve "as to form" include various Bond
Indentures, Preliminary Official Statements, Bond Purchase Agreements, and Continuing Disclosure
Certificates.
The Bond Indentures provide the basic framework, structure and definition for the various series of
bonds. These documents set out all the rules that must be followed and detail the legal basis for the
bond administration.
nks
P:~BondDocsWdmin -RDA TABS series ABCD to PFA board April 1, 2009.doc
March 19, 2009
4826-0198-1440.2
ADMINISTRATIVE REPORT
The Preliminary Official Statement is the disclosure document provided by the Agency and the
Underwriter to prospective purchasers of the Bonds and the Final Official Statement is the disclosure
document provided by the Agency to the Underwriter of the Bonds who then in turn provides the
document to purchasers of the Bonds. In connection with the Preliminary Official Statements, the
Agency must execute a Rule 15c2-12 Certificate, in which the Agency represents that the Preliminary
Official Statement has been "deemed final" within the meaning of the Securities and Exchange
Commission Rule.
The Purchase Contract requires the Underwriter to purchase the Bonds, provided certain terms and
conditions set forth therein are met by the Agency and other parties. The Continuing Disclosure
Certificates set out the Agency's obligation under S.E.C. Rule 15c2-12 to provide updated financial
and operating information to certain securities information repositories on an annual basis and to
provide notices of certain material events to such securities information repositories upon the
occurrence of such material events.
nks
P:\BondDocsWdmin -RDA TABs series ABCD to PFA board April 1, 2009.doc
March 19, 2009
4826-0198-1440.2
MEETING DATE: April 1, 2009 AGENDA SECTION: New Business !~
ITEM: ~-I . b .
T0: Chairman and Board of Directors of the
Bakersfield Public Financing Authority
FROM: Nelson K. Smith, Treasurer of the Authority
DATE: March 19, 2009
APPROVED
TREASURER /l/S
GENERAL COUNSEL ~~
EXECUTIVE MANAGER
SUBJECT: Authorize transfer of residual fund balance in the amount of $ 229,154.31 from the
Bakersfield Public Financing Authority to the City of Bakersfield
RECOMMENDATION: Staff recommends authorization of the transfer to the City.
BACKGROUND:
The Bakersfield Public Financing Authority (the Authority) was originally created in 1993 to facilitate
the issuance of several bond transactions (in 1994) including debt related to the Convention Center
Ballrooms and Meeting Rooms, bridge projects, sewer projects, and the refinancing of some
Assessment District debt.
The debt issues have all been paid in full as of October 2008 and there remains a residual fund
balance within the Authority funds. These residual monies are the surplus interest earnings on the
reserve fund that were not needed to make the final debt retirement payment. Transfer of these
funds to the City will allow staff to close out the financial records of the Authority this fiscal year, which
will save the organization in future costs of annual audits and related financial reporting for the PFA.
Staff is requesting authorization to transfer these monies to the City's Capital Outlay Fund as a one
time revenue source to fund future capital or maintenance needs of the Rabobank Arena and
Convention Center complex. The City Council will be asked later this evening to accept the transfer
and appropriate the funds for this purpose.
nks
S:WdminWdmin -PFA close out transfer to city April 1, 2009.doc
March 19, 2009
4826-0198-1440.2
~ A
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ADMINISTRATIVE REPORT
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MEETING DATE: April 1, 2009 AGENDA SECTION: Consent Calendar
ITEM: y , C .
TO: Honorable Mayor and City Council
FROM: Pamela A. McCarthy, City CI rk
DATE: March 25, 2009
APPROVED
DEPARTMENT HEA ~ ~'T
CITY ATTORNEY,
CITY MANAGER /~'
SUBJECT: Setting next Public Financing Authority Meeting to be held in conjunction with a City Council
Meeting in the first quarter of 2010.
RECOMMENDATION:
Staff recommends approval.
BACKGROUND:
:pl
March 25, 2009, 2:25PM
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